ROTTERDAM, THE NETHERLANDS — Louis Dreyfus Company (LDC), a leading merchant and processor of agricultural products, announced on April 25 that it will invest in the planned initial public offering of Leong Hup International (LHI) as part of its strategy to diversify and expand overseas.
Established in 1978, LHI is seeking to list all of its shares on Bursa Malaysia. A “pure-play” poultry producer, LHI has developed an integrated livestock and feed milling model, with activities in Malaysia, Singapore, Indonesia, Vietnam and the Philippines. LHI’s portfolio also includes a branded processed food business.
LHI said the IPO will support its intentions to continue to grow its integrated business model in newer markets, with a focus on expanding upstream operations.
“LDC’s cornerstone investment in LHI’s IPO is in line with LDC’s strategy to diversify further downstream and strengthen our footprint in growth markets by partnering with key players in the feed, food and nutrition value chain,” said Ian McIntosh, group chief executive officer at LDC.
Thomas Couteaudier, head of LDC’s South and Southeast Asia Region, added, “The investment cements the rewarding commercial partnership that our two companies have enjoyed for many years. With poultry consumption in Southeast Asia continuing to grow, the backward integration of a livestock business like LHI provides better cost and quality control, as well as the opportunity for LDC to add greater value along the supply chain. This is an excellent fit and supports our mutual growth strategies in the region.”
LDC said its growth strategy involves increased vertical integration, diversification through value-added products, as well as investments in innovation. Strategy implementation includes greater regional presence through targeted investments, partnerships and joint ventures to accelerate growth, of which its investment in LHI’s IPO is the latest example.
A major part of LDC’s growth strategy has been in Asia. Last fall, LDC (China) Trading Company Ltd. (LDC) opened a new oilseeds processing plant, Louis Dreyfus Company (Tianjin) Food Technology Company Ltd., located in the Binhai New Area District of the Tianjin Free Trade Zone.
Louis Dreyfus Company is active in over 100 countries and employs approximately 18,000 people globally.